Pages: 18

This chapter introduces the concept of product management (PM) and its evolution over the decades. The chapter begins by defining a product and then describes how products have evolved over the last century, from physical to virtual products, services, digital products, and hybrid products. We discuss how the role of a product manager has evolved to keep in sync with the definition of a product. A product manager is the “chief executive” of a product. The role of the product manager has evolved over the last hundred years. From being purely responsible for marketing a product or brand management, they are now responsible for its overall success. They, therefore, need to manage multiple activities – ideation, product development, production, marketing, distribution, and customer service. Product managers and service product managers are some examples. While the role of a PM is similar across these segments, the nuances in the marketed products give rise to the requirement for specific knowledge and skills. This chapter also helps differentiate between product, project, and brand management and how these are different but overlap. Finally, the chapter discusses the challenges of product management-led organisational structures. Several organisational structures support product management. Companies develop and adapt structures to suit their needs based on the number of products being managed, the company's lifecycle and products, the scale, and the markets in which they operate. This chapter also discusses the critical skills required to be an effective product manager.

Pages: 20

Business planning is a crucial activity undertaken by companies. The output of this process is a company or corporate plan, divisional plans, and functional plans. This chapter outlines the key elements of a functional marketing and product planning process. The chapter also explains the corporate planning process and how the marketing plan is a critical input. The functional marketing plan is the key building block of a corporate plan. It provides inputs for developing the plans for other functions such as research and development (R&D), manufacturing and engineering, technology, and finance. The marketing plan details the plans for individual products within a company's product portfolio. A marketing plan addresses three questions about the product portfolio – (i) Where are the products? (ii) Where can they be? and (iii) How can they get there? Several practical frameworks are available to analyse the market, the competition, and product performance, which help answer these questions. The marketing plan also highlights potential risks and risk mitigation strategies. The final and important aspect of the marketing plan is to develop a governance structure for its implementation. This chapter introduces the similarities and differences between product management and product development. Finally, it provides an overview of a typical product development cycle and discusses the individual elements.

Pages: 20

This chapter discusses the frameworks and processes for market scanning and how market scanning and competition mapping lead to the ideation of new products. Market scanning is an essential first step in product management and product development. Product managers must set up a process for scanning a company's macro- and micro-environments. Macro-environments refer to the large environment that impacts a company and its products. This can be further classified into economic and non-economic factors. On the supply side, economic factors impact the cost and price of products, while on the demand side, these factors impact consumer spending. The micro-environment refers to factors closer to a company that impacts its products. Porter's Five-Forces framework is an excellent way to analyse a company's micro-environment. Several technologies are available to collect, record, and analyse market scanning data. Given the volume and velocity of data, it is essential to implement these technologies to manage the market scanning process effectively. An essential element of market scanning is competition mapping. Defining and mapping competition is becoming challenging in the digital world as industry boundaries constantly shift and blur. Several frameworks are available to map and understand competition. The chapter also sets the base for product ideation. Market scanning and competition mapping are key inputs to product ideation. Blue Ocean® and Christensen's Theory of Disruptive Innovation are frameworks that help in the ideation process for new products.

Pages: 24

Product innovation can be incremental, with continuous but evolutionary improvements, or radical or revolutionary. The chapter discusses several frameworks for classifying product innovations. Every product needs a clear value proposition. This chapter helps define the concepts of Value Proposition and Business Model and provides frameworks for developing both. The next part of the chapter delves into developing a business plan. A business plan for a product has three main components: a unit of sale, revenues, and costs. Designing the unit of sale is becoming more challenging as business models evolve rapidly. Finally, the chapter provides various financial metrics that can be used to develop and manage the product development process. While revenues, profitability, and return on investment (RoI) are typically metrics used to determine product feasibility, the chapter explores other metrics that form the basis for new product launches.

Pages: 19

Chapter 4 discussed developing business models and conducting a commercial feasibility exercise for the ideas shortlisted from the ideation phase. In this chapter, we discuss the next phase of the product development process, product design. Design is the blueprint, plan, or specification for developing a product or process. Design can vary across industrial products, automobiles, architecture, mobile applications, consumer goods, or textiles. At the same time, the steps of a design process remain unchanged – (i) understanding customer needs, (ii) creating multiple designs, (iii) receiving customer feedback, (iv) prototyping the design, (v) testing, (vi) building and scaling, and (vii) ongoing product improvements. This chapter discusses the design principles of three types of products – industrial, service, and technology. As industrial products are physical products, the design elements include steps such as the choice of materials, engineering, and packaging. On the other hand, service design requires a combination of process design, physical infrastructure, and people skills. Technology products can be hardware, software, or a combination of both. Finally, the chapter outlines two design methodologies: DART and design thinking. Design Thinking is the most popular design process for all types of products, especially technology and service product design.

Pages: 20

Developing and managing a product roadmap is vital for any product manager, especially for digital product managers who have to navigate the ever-evolving digital landscape. Chapter 5 delved into the concept of good design, exploring its relevance to hardware and software products. In Chapter 6, the focus shifts to digital product management, highlighting the unique considerations and processes underpinning digital product creation. Commencing with an examination of product roadmaps, the chapter emphasises their central role in guiding a product's journey. The concept of a “product vision board” is introduced as a potent tool for translating grand visions into tangible deliverables and measurable outcomes. Critical aspects during development involve prioritising the product features and functionality, and some popular frameworks are covered. For nascent digital products, the chapter explores pivotal concepts such as wireframes, minimum viable products (MVPs), and prototypes, offering insights into processes involved in rapidly launching products in the market. Additionally, the chapter examines innovative development approaches like low-code and zero-code development, equipping readers to make informed technology choices. The chapter also covers testing and quality assurance, deployment strategies, and the intricacies of product life cycle management.

Pages: 17

In today's digital age, many liken data to “new oil.” This comparison aims to highlight that, much like how oil profoundly affected businesses after World War II, data is anticipated to have a comparable impact on businesses, value creation, and societal well-being in the foreseeable future. Recognising and valuing the phenomenon of “data abundance,” a direct outcome of the ongoing digital revolution, is crucial for exploring the distinctive features of product management in this era. Chapter 7 details the important aspects of digital data, covering its occurrence, potential, identification, and the life cycle of utilising data to enhance the value and impact of products and offerings. In this chapter, the focus is on the role of data strategy within product life cycles. It delves into the intricacies of data strategy for product management by examining origins, methods of harnessing, and various data applications. The chapter provides insights into recognising the multifaceted potential of data and addresses the complexities and challenges associated with effectively leveraging data to create value. Ultimately, it concludes by discussing organisational capabilities and processes essential for unlocking value from data abundance, emphasising the importance of fostering a data-centric approach in product management. The information in this chapter aligns with the main concepts of the technology foundations and growth hacking discussed in Chapter 14. These two chapters offer a perspective anchored on digital technologies and data to enhance the value of products and offerings. While Chapter 7 concentrates on the foundational role of data, Chapter 14 complements this by outlining a pathway to derive value from the abundance of data through digital technologies.

Pages: 17

In this chapter, we continue from the concepts of the product design process described in Chapter 5 and focus on developing and scaling industrial products. The chapter covers two distinct but related concepts: supply chain management, and production innovation and automation. While product managers may not be directly involved in these processes, they must understand the manufacturing processes, optimise supply chain processes, and manage product costs by leveraging innovation and automation. We define supply chains and the impact of digital on supply chains. We discuss the anatomy of supply chains, which captures the key stages, elements, and flows involved in a typical supply chain. The chapter also covers the uncertainties in supply chains and the levers available for product managers to manage supply chain performance. The chapter then focuses on how production can be scaled using a combination of technology/automation, outsourcing, and quality control. The chapter discusses the various types of production and back-office process automation. The chapter also discusses how digitalisation has reduced transaction costs and allowed for the unbundling of value chains. We discuss quality standards and certifications and the types of quality programmes a company would need to manage its operations efficiently and effectively.

Pages: 26

In Chapter 2, we discuss marketing planning and its components. In this chapter, we explore various aspects of marketing. We use the Dolan Schematic of a Marketing Process (Dolan, 1997) as the basis for this chapter. We begin with the 5Cs – Customers, Company, Competitors, Context, and Collaborators. We then discuss how a company can map its internal strengths with customer needs and conduct a market audit. The chapter then focuses on market segmentation and target market selection. We then explore the creation of value propositions for the target markets. We discuss frameworks for determining product–market fit. Once a product manager outlines the value they wish to create, the next step is capturing it. The chapter then moves to the marketing mix and discusses the various strategies for products, pricing, promotions, and place or distribution in detail. We discuss different types of product positioning. We discuss how new digital channels and business models are changing the marketing mix of traditional products. We also cover changes in conventional retailing and the nuances of e-commerce retailing, new pricing strategies, and pricing adjustment strategies. As part of promotions, we also cover product and brand storytelling concepts, customer personas, and how products and messaging differ at different buying cycle stages. The chapter also covers competition strategies and how products can benchmark themselves and stay ahead of the competition.

Pages: 23

Marketing communications or promotions are how product managers communicate the value proposition to potential customers and generate sales. This chapter will help the reader understand: The 7M framework for creating a promotion strategy The type of promotions What digital marketing is and how it is different from traditional marketing? How to build a marketing campaign? The chapter covers the various channels for digital marketing and how product managers can use these channels for both unpaid (organic) and paid promotions. It covers topics such as Search Marketing, including Search Engine Optimisation (SEO) and Search Engine Marketing (SEM) and Keywords. We discuss social media marketing and the several platforms available for marketing, each tailored to a specific type of message and customer segment. Mobile marketing is another form of digital marketing that is growing due to the proliferation of mobile devices and extensive access to the internet through mobile phones, especially in emerging economies. One of the critical differentiators of digital marketing is the availability of data and the potential of analytics. The chapter covers Behaviour, Experience, and Outcome-related analytics.

Pages: 18

Companies spend considerable effort building corporate, technology, and marketing strategies but neglect sales. There is a mistaken but common notion that sales will happen automatically if a company has a good product and a marketing strategy. Strategy is planning, while sales is about execution. This chapter focuses on best practices for building and rolling out a sales plan and Go-to-Market strategies. The chapter discusses how a sales process can be set up for a new product. We discuss product launches and the activities that are integral to launches. The chapter then discusses how to set up and monitor a sales process. This includes lead generation, pipeline management, salesforce tracking, etc. We then discuss direct vs. indirect marketing, hiring internal sales teams and identifying and setting up channel partners. Sales training is an essential factor for the success of sales personnel, whether internal or external. We discuss sales training programmes and the marketing collateral critical for selling. We then discuss various types of selling techniques, especially in the context of B2B sales. The chapter also discusses sales and channel incentives. We discuss vertical and horizontal marketing systems. The next part of the chapter focuses on the sales monitoring process and then touches on building a sales organisation. The final part addresses the gaps between marketing and sales and how to bridge them.

Pages: 17

Customer service is vital for all organisations, whether start-ups or large companies. Relationships become even more critical in Business-to-Business (B2B) companies, where over 70% of sales are from existing customers. As differentiation between products reduces, customer service becomes the only differentiator. This chapter discusses the importance of building a comprehensive customer service strategy. We outline the various touch points for customer service and how complex this is becoming. We discuss customer services in the context of B2B and Business-to-Customer (B2C) products and how this differs. We outline customer relationship management (CRM) tools and key metrics required to manage customer service. We also discuss how to handle complaints and track resolutions effectively. Online reputation management is an integral part of customer service in the digital world. We discuss the challenges companies face, including complaints, trolls, fake reviews, and product defects and recalls. We also discuss how a company can proactively set up a reputation management process. We outline methods for tracking and handling issues through a combination of processes and tools.

Pages: 15

Chapter 13 on project management dives deep into the essential disciplines of project and programme management within the context of digital product development. Shifting focus from the strategic aspects covered earlier, it explores the principles, methodologies, and tools that drive successful project and programme execution. The chapter begins by clarifying the differences between product management and project/programme management, highlighting their unique roles and responsibilities. Effective coordination between these two disciplines is paramount for aligning strategic objectives, customer needs, and project execution. Understanding these distinct yet interdependent functions is crucial, as they collectively contribute to the overall success of digital product development. The chapter delves into various project life cycle stages, including initiation, planning, monitoring, and control. Agile approaches to project management are explored, along with portfolio management strategies and effective stakeholder management techniques. Throughout this exploration, the chapter emphasises the critical role of project and programme management tools to ensure the efficient and effective completion of temporary initiatives within the organisation. Effective coordination between product managers and project/programme managers is emphasised throughout the chapter to align strategic objectives, customer needs, and project execution. Understanding these distinctions is crucial, as these interdependent disciplines collectively contribute to the overall success of digital product development.

Pages: 7

In the digital era, product managers have a unique opportunity to address not only the needs of customers and shareholders but also the broader impacts of their products. This chapter explores how product managers can integrate considerations of thermodynamic efficiency and ecological footprint from a material perspective, as well as security, privacy, and ethical considerations from an information perspective. Key topics include sustainability in product management, responsible product development, and considerations for responsible AI. Additionally, the chapter discusses the importance of conducting ethical impact assessments. While the chapter only provides a high-level overview of this emerging dimension, it underscores the necessity for product managers to engage in continuous learning to stay abreast of these emerging dimensions, ensuring their products are both innovative and responsible. This is a rapidly evolving field, and a comprehensive treatment of the subject is beyond the scope of this text. However, this chapter offers an essential introduction for product managers, encouraging them to stay informed about emerging developments and to develop product strategies that address these new imperatives.

Pages: 21

In the digital era, the influence of data on products and offerings can be categorised into three main types: firstly, using data to distinguish and enhance existing products; secondly, employing data to extend existing products into adjacent areas; and finally, utilising data to induce shifts in business models by introducing entirely new products. Regardless of these categories, the effective use of information is vital for extracting value from data. This chapter introduces a range of information-based capabilities that product managers should develop. These capabilities are essential for identifying the path to monetisation, or in simpler terms, how to add value based on the market context in which products and offerings appear. This chapter is divided into two main parts. The first part focuses on the technology foundation, the core of information-based capabilities. Understanding the components of this foundation is crucial for product managers to develop the skills needed to invest in, build, and advance their technological assets. This, in turn, establishes the framework for information-based capabilities to move through a company's value chain. The second part of the chapter introduces a strategic framework. This framework helps product managers assess different paths the organisation could follow to generate customer value and extract shareholder value. This section also outlines approaches for operationalising various alternative paths to value.